3 Survival Strategies Used by Big Brands

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In the fast-paced world of business, survival is never guaranteed. Economic downturns, market disruptions, and shifting consumer preferences have taken down even the most established brands. The 1997 financial crisis in Asia led to widespread business closures, with an estimated $100 billion in capital outflows affecting industries across the region (Radelet & Sachs, 1998). In Africa, startup failure rates have reached as high as 54% in some regions, with Ethiopia and Rwanda experiencing rates of up to 75% (Statista, 2020). However, some companies survive and emerge stronger in times of crisis. Their secret? Adaptation, innovation, and financial resilience.

In this edition, we explore the survival strategies of three major companies from Asia and Africa and extract key lessons for business leaders and entrepreneurs like you.

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Alibaba, China’s largest e-commerce giant, has revolutionized online shopping by prioritizing customer needs. During the 2003 SARS outbreak, founder Jack Ma saw an opportunity to expand online retail when brick-and-mortar businesses suffered. Alibaba launched Taobao, a customer-focused marketplace that quickly outpaced competitors by offering free listings and personalized recommendations. Even in economic downturns, Alibaba continues to innovate with AI-driven shopping experiences and logistics advancements.

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Kenya’s Safaricom transformed financial transactions in Africa by launching M-Pesa in 2007. This mobile money service gave millions of unbanked individuals access to financial services. Despite initial regulatory challenges and scepticism, Safaricom adapted by forming strategic partnerships and continuously improving its platform. Today, M-Pesa is a lifeline for businesses and individuals across Africa, demonstrating the power of innovation in addressing real-world problems.

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The Dangote Group, founded by Aliko Dangote, is one of Africa’s largest conglomerates. Unlike many businesses that struggled with debt, Dangote built his empire through financial discipline and reinvestment of profits. Instead of relying on foreign loans, he focused on self-funding expansion into cement, sugar, and oil refining industries. This financial strategy has allowed the company to survive economic downturns and currency fluctuations while continuing to grow.

Lessons for Business Leaders and Entrepreneurs

1?? Customer loyalty is key. Prioritize customer experience to create a resilient business.

2?? Adaptability ensures survival. Stay ahead of industry trends and be willing to pivot.

3?? Financial discipline matters. Maintain cash flow and avoid unnecessary risks.

How to Implement These Strategies in Your Business

? Enhance Customer Experience: Regularly gather feedback and personalize services.

? Stay Agile: Embrace innovation and be open to new business models.

? Strengthen Finances: Build reserves, cut unnecessary expenses, and diversify revenue.

Survival in business is about strategy, not luck. Which of these strategies will you apply? Reply and share your thoughts—we’d love to hear from you!

Until next time, keep pushing forward! ??

References

Radelet, S., & Sachs, J. D. (1998). The East Asian financial crisis: Diagnosis, remedies, prospects. Brookings Papers on Economic Activity, 1998(1), 1-74.

Statista. (2020). Startup failure rate in Africa by country. Retrieved from https://www.statista.com/statistics/1295678/startup-failure-rate-in-africa-by-country/